Article Archive For
MAR2008
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Books For Traders by Technical Analysis, Inc.
ARTICLE SYNOPSIS ...Books For Traders by Technical Analysis, Inc.
? 2008 Edition: The Neatest Little Guide To Stock Market
Investing
? Beat The Market The Easy Way!
? Day Trading For Dummies
? Surviving The Storm
? Timing Techniques For Commodity Futures Markets
? Trade What You See: How To Profit From Pattern Recognition
? The Ultimate Dividend Playbook...
AUTHOR: Technical Analysis, Inc.DATE: MAR2008SUBJECT: Books For Traders
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Explore Your Options by Tom Gentile
ARTICLE SYNOPSIS ...Explore Your Options by Tom Gentile
SIZING UP A STRADDLE BUY
I was looking at a particular stock for a
possible straddle. The company is expected
to release earnings in 10 days.
Suppose I intend to purchase options
that have 50 days left until expiration.
According to my calculations, the
straddle can be initiated for a debit of
$400 ($2.00 for the put and $2.00 for
the call), which is also my maximum
risk. If I intend to hold this trade for
only 10 days, would 5% of my account
size be a prudent amount to risk? For
example, if my account size is $10,000,
I can only do one contract straddle i...
AUTHOR: Tom GentileDATE: MAR2008SUBJECT: Explore Your Options
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Forex Focus: An MACD Trading System by Alexander Sabodin
ARTICLE SYNOPSIS ...Forex Focus: An MACD Trading System by Alexander Sabodin
This simple trading system was
applied successfully to forex pairs
using the moving average
convergence/divergence. See if it'll
work for you.
Today, we see advertisements
of different automatic trading systems at numerous websites
and forums. If we took those ads
seriously, all we would have to do
is click the mouse and money
would pour into our pockets. Not
only that, such black boxes usually
don't come cheap. Keeping all that
in mind, let's try to create our own
trading system. As long as you
don't lay claim to the holy grail, a
tra...
AUTHOR: Alexander SabodinDATE: MAR2008SUBJECT: Forex Focus
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Futures For You by Carley Garner
ARTICLE SYNOPSIS ...Futures For You by Carley Garner
WHY TRADE FUTURES?
Many beginning commodity traders are
migrants from the world of stock trading,
but before making the transition
they often ask why they should trade
futures. The answer is simple, but the
decision to move forward isn't.
No interest on leverage: The futures
market is a convenient venue for speculators
in that the leverage is high and the
ability to buy or sell in any order is
abundant. Unlike equity traders who
must borrow shares of stock from their
brokerage firm before short-selling and
are then subject to interest charges,
futures trade...
AUTHOR: Carley GarnerDATE: MAR2008SUBJECT: Futures For You
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Interview: Daytrading With The StockBandit's Jeff White by Jayanthi Gopalakrishnan
ARTICLE SYNOPSIS ...Interview: Daytrading With The StockBandit's Jeff White by Jayanthi Gopalakrishnan
Jeff White, founder and chief technical analyst of TheStockBandit.com, started trading the
markets in 1998 and has since gained extensive experience in both stocks and options. His
trading style has gradually evolved over the years, including, as he mentions in the interview,
understanding the true usefulness of the exchange of ideas for an individual's trading.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan (JG) and Staff Writer Bruce
Faber (BF) interviewed White via a conference call on January 7, 2008....
AUTHOR: Jayanthi GopalakrishnanDATE: MAR2008
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Letters to S&C by Technical Analysis, Inc.
ARTICLE SYNOPSIS ...Letters to S&C by Technical Analysis, Inc.
METASTOCK CODE FOR
THE FRACTAL DIMENSION INDEX?
Editor,
I found Radha Panini's
articles, "From Nile To
NYSE" (February 2007
S&C) and "Trading Systems
And Fractals" (March 2007 S&C), very interesting. At your
website, I see that it's possible to get the
code for some software, but I could not
find code for MetaStock. Do you have
any suggestions on where I can find
MetaStock code for the fractal dimension
index (FDI)? - MATTHIAS FREY, Germany
MetaStock has not sent us code for the
fractal dimension index. However, there
is a MetaStock user forum that...
AUTHOR: Technical Analysis, Inc.DATE: MAR2008SUBJECT: Letters To S&C
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Measuring Cycle Periods by John F. Ehlers
ARTICLE SYNOPSIS ...Measuring Cycle Periods by John F. Ehlers
Measuring cycle periods allows you to adjust your
indicators so they adapt to current market conditions.
Here's how.
IF you want to make your indicators and
strategies adaptive to current market conditions,
you must first measure the cycle
periods that are present in the data. Given that you know the dominant cycle, you can then use
that information to dynamically adjust your computations.
For example, you can set the observation period
of the relative strength index (RSI) to be half the
dominant cycle. I have previously described a practical
way to ...
AUTHOR: John F. EhlersDATE: MAR2008SUBJECT: Trading Systems
Opening Position by Jayanthi Gopalakrishnan
AUTHOR: Jayanthi GopalakrishnanDATE: MAR2008SUBJECT: Opening Position
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Q&A by Don Bright
ARTICLE SYNOPSIS ...Q&A by Don Bright
EXITING TRADES
I've been trading for about a year. I've
started using a combination of gray
boxes, which keeps me focused and disciplined.
My entries have been consistently
profitable and timed well, but my
exits have not been because I always
sell too early. My most profitable system
has been to pick the strongest 30
stocks every day, and by strong I mean
what doesn't go down when the market
is going down -- my gray box then buys
them after 2:00 pm Eastern time on a
moving average convergence/divergence
(MACD) crossover with a
midrange relative strength index (RSI).
Right ...
AUTHOR: Don BrightDATE: MAR2008SUBJECT: Q&A
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Stocks & Commodities V. 26:3 (24-32) Buying Straddles by Jay Kaeppel
ARTICLE SYNOPSIS ...Buying Straddles by Jay Kaeppel
In this, the third article of the series, the strategy of buying a
straddle is discussed, which gives option traders an opportunity
not available to others.
AS discussed in the first article in this series, there
are several key factors to consider in determining
the best option trading strategy to use at any
given point for a given security. Likewise,
these criteria can be used to zero in on the specific best option or options to trade in executing a particular
strategy. Selecting the proper strategy involves knowing
what to look for in terms of the following...
AUTHOR: Jay KaeppelDATE: MAR2008SUBJECT: Options
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The Russell Reconstitution: Plan For 2008 by Don Bright
ARTICLE SYNOPSIS ...The Russell Reconstitution: Plan For 2008 by Don Bright
Are there still profit-making opportunities in the Russell
2000? Find out here.
There has been a lot of discussion about the "Russell
reconstitution" and whether there would still be a good
profit opportunity for professional traders. Some have
opined the "edge is gone," but I am here to say, "No, it isn't." I have hundreds of traders, many of whom made excellent
money using various strategies, all focusing on this event.
RECONSTITUTION
First off, here's a basic description of what we're talking
about. Each stock market index is compo...
AUTHOR: Don BrightDATE: MAR2008SUBJECT: Real World
Traders' Resource: Online Trading Services by Technical Analysis, Inc.
AUTHOR: Technical Analysis, Inc.DATE: MAR2008SUBJECT: Traders' Resource
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Traders' Tips by Technical Analysis, Inc.
ARTICLE SYNOPSIS ...Traders' Tips by Technical Analysis, Inc.
Editor's note: Most of this
month's Traders' Tips are based
on John Ehlers' article in this
issue, "Measuring Cycle Periods."
Code written in Easy-
Language for TradeStation is
already provided by Ehlers in
the article's sidebars. Additional
code is presented here.
Other tips presented in this section are based on articles
of the contributors' choosing.
Readers will find our Traders' Tips section in its entirety
at the STOCKS & COMMODITIES website at www.Traders.com
in the Traders' Tips area, from where the code can be copied
and pasted into the app...
AUTHOR: Technical Analysis, Inc.DATE: MAR2008SUBJECT: Traders' Tips
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Trading By Tape-Reading by Adam Wasserman
ARTICLE SYNOPSIS ...Trading By Tape-Reading by Adam Wasserman
The foundation of all trading systems, indicators, and chart
patterns is the battle of the tape. If you master that, it can
make all the difference in your trading.
Regarded as one of the first-ever successful
strategies for traders, tape-reading is trading in
its purest form. Charts, technical indicators,
red lights, and green lights work wonderfully
when mastered, but all are products of the tape and don't exist without it. By withstanding the test of time, tape-reading has proven to be the most consistent method of
pulling money out of the stock m...
AUTHOR: Adam WassermanDATE: MAR2008SUBJECT: Classic Techniques
Working Money: The Candlestick Kicker by Steve Bigalow
AUTHOR: Stephen W. BigalowDATE: MAR2008SUBJECT: Candlestick Corner
Working Money: Trading The 10-Bagger by Thomas Maskell
AUTHOR: Thomas MaskellDATE: MAR2008SUBJECT: Novice Traders' Notebook